European Union

TheEuropean Union(EU) is apolitico-economicunion of28 member statesthat are located primarily inEurope. The EU operates through a system ofsupranational institutionsandintergovernmental-negotiated decisions by the member states. The institutions are: theEuropean Commission, theCouncil of the European Union, theEuropean Council, theCourt of Justice of the European Union, theEuropean Central Bank, theEuropean Court of Auditors, and theEuropean Parliament. The European Parliament is elected every five years byEU citizens.

The EU traces its origins from theEuropean Coal and Steel Community(ECSC) and theEuropean Economic Community(EEC), formed by theInner Sixcountries in 1951 and 1958, respectively. In the intervening years, the community and its successors have grown in size bythe accession of new member statesand in power by the addition of policy areas to its remit. The Maastricht Treatyestablished the European Union under its current name in 1993 and introducedEuropean citizenship. The latest major amendment to the constitutional basis of the EU, theTreaty of Lisbon, came into force in 2009.

The EU has developed asingle marketthrough a standardised system of laws that apply in all member states. Within the Schengen Area, passport controls have been abolished. EU policies aim to ensure thefree movement of people, goods, services, and capital,enact legislation in justice and home affairs, and maintain common policies on trade,agriculture,fisheries, andregional development.

Themonetary unionwas established in 1999 and came into full force in 2002. It is currently composed of 19 member states that use the euro as their legal tender. Through theCommon Foreign and Security Policy, the EU has developed a role inexternal relationsanddefence. The union maintains permanentdiplomatic missionsthroughout the world and represents itself at the United Nations, theWTO, theG8, and theG-20.

With a combined population of over 500 million inhabitants, or 7.3% of the world population,the EU in 2014 generated a nominalgross domestic product(GDP) of 18.495 trillion US dollars, constituting approximately 24% of globalnominal GDPand 17% when measured in terms ofpurchasing power parity. As of 2014 the EU has the largest economy in the world, generating a GDP bigger than any othereconomic unionor country.Additionally, 26 out of 28 EU countries have a very highHuman Development Index, according to theUNDP. In 2012, the EU was awarded theNobel Peace Prize.